DoveHill Successfully Exits Preferred Equity Investment in Courtyard New York Manhattan Chelsea, Generating an 18.4% IRR Return For Investors

FORT LAUDERDALE, Fla., May 27, 2025 /PRNewswire/ -- DoveHill, a vertically integrated hospitality-focused real estate investment firm, today announced the successful exit of its preferred equity investment in the Courtyard New York Manhattan Chelsea, delivering an impressive 18.4% IRR over a four-year hold period to its investors.

DoveHill provided the preferred equity capital in 2020, amid the peak of the COVID-19 pandemic, addressing the property's immediate capital needs for operating shortfalls, loan reserves, and working capital. At an attractive last dollar basis of approximately $229,000 per key, DoveHill's investment basis was significantly below market trades and replacement cost in New York City, highlighting the firm's disciplined approach to risk mitigation and value creation.

At an attractive last dollar basis of approximately $229,000 per key, and sourced off market, DoveHill's investment basis was significantly below market trades in New York City, highlighting the firm's disciplined approach to asymmetric return.

DoveHill Sponsor Fund I was strategically raised during the COVID-19 pandemic to capitalize on distressed opportunities within the hospitality sector, providing preferred equity capital at compelling valuations. Building upon this proven strategy and exceptional track record, DoveHill is raising its second fund, DoveHill Opportunity Fund 2, which will continue to pursue preferred equity investments in hospitality and direct equity stakes in distinctive experiential and lifestyle-centric hotels. DoveHill's competitive advantage lies in its proprietary sourcing capabilities, with the majority of investments secured through off-market channels, coupled with its demonstrated expertise in crafting asymmetric structures to minimize risk and optimize investor returns.

A Continued Strategic Investment Vehicle for DoveHill's Newest Fund

"We strategically deployed capital at a critical moment during the pandemic, leveraging our expertise and deep understanding of hospitality market cycles," said Jake Wurzak, Founder and CEO of DoveHill. "This exit underscores our capability to identify, structure, and execute preferred equity investments with substantial upside while carefully managing risk exposure."

Charles Paloux, Chief Investment Officer of DoveHill, commented, "The successful exit of our preferred equity investment in the Courtyard New York Manhattan Chelsea validated our investment thesis. Through our new vehicle, DoveHill Opportunity Fund 2, we continue to be focused on hospitality preferred equity opportunities across the United States."

About DoveHill

Established in 2011 and headquartered in Fort Lauderdale, Florida, DoveHill is a premier real estate investment firm specializing in hospitality, industrial, and preferred equity strategies across the United States. With a proven track record exceeding $1.5 billion in transactions across over 19 hotel investments, DoveHill leverages a hands-on approach, operational expertise, and proprietary sourcing capabilities to identify opportunities in high-growth, supply-constrained markets. The firm excels in acquiring underutilized assets and implementing innovative strategies to create enduring value and superior returns for its partners and investors.

For more information about DoveHill:
Website: www.dovehillcos.com
Investor Contact: [email protected]
Media Contact: Clare Feraer, (215) 995-4590, [email protected]

SOURCE DoveHill